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CFPB Attempts to Clarify Servicer Credit Reporting Requirements

Posted To: MND NewsWire

There has apparently been considerable confusion regarding servicer obligations to report to credit agencies regarding loans in forbearance. The original guidance issued to servicers by the GSEs Fannie Mae and Freddie Mac in mid-March regarding the COVID-19 emergency instructed them “to suspend reporting the status of a mortgage loan to credit bureaus during an active forbearance plan, or a repayment plan or Trial Period Plan where the borrower is making the required payments as agreed, even though payments are past due, as long as the delinquency is related to a hardship resulting from COVID-19.” That guidance was countermanded by provisions in the Coronavirus Aid, Relief, and Economic Security or ”CARES Act” passed by Congress later that month. Section 4021 of the Act modifies parts of…(read more)

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